Securitize, a prominent tokenization platform, has significantly bolstered its efforts to introduce tokenized equity to US investors by appointing a former PayPal executive as its new general counsel. This move signals a strong commitment to expanding the reach of digital securities within the American market.
The platform announced on Tuesday the appointment of Jerome Roche, an executive who previously led PayPal's expansion into digital asset projects, including the development of the PayPal USD (PYUSD) stablecoin. Roche's extensive experience in digital finance is expected to be instrumental in Securitize's strategic growth.
Securitize also directly addressed the perception that most tokenized securities are offered internationally due to limited local stock access. The company stated that its tokenized securities are readily available to US investors, challenging this prevailing notion.
"There’s been a perception that tokenized securities must be offered primarily outside the US, but our experience shows the opposite," Securitize CEO Carlos Domingo told Cointelegraph.
A Clear Regulatory Path for Tokenized Stocks in the US
Securitize asserts that operating real-world asset (RWA) tokenization offerings within the US regulatory framework is not only feasible but also scalable and institutional-grade. The company emphasizes that it has successfully demonstrated a clear regulatory pathway for issuers to natively tokenize assets for US investors.
Domingo elaborated, stating, "These are not synthetic representations, or derivatives, but real securities onchain." He further explained the compliance framework:
We operate using SEC-regulated infrastructure, including a registered transfer agent broker-dealer, and fund admin, which allows US investors to access and legally hold tokenized securities in a fully compliant framework.
This optimistic outlook on US tokenization follows Securitize's recent achievement of regulatory approval in the European Union. On November 26, the platform secured approval to operate as an investment company and a trading and settlement system in the EU. This dual approval positions Securitize as one of the first operators of regulated digital securities infrastructure in both the US and the EU, according to the company.
Roche, in the announcement, highlighted the transformative potential of modern ledger technology: "For the first time, modern ledger technology is giving us the ability to record ownership, settle transactions, and move value in ways that are fundamentally better than the fragmented systems we’ve inherited." He also stressed the importance of regulatory compliance: "Innovation only works when it fits squarely within the guardrails of applicable law," underscoring Securitize's commitment to regulated tokenized securities globally.
Broader US Acceptance of Tokenization
Securitize's developments are part of a larger trend indicating increased acceptance of tokenization in the US. Just days prior, the Securities and Exchange Commission (SEC) dropped its investigation into Ondo Finance, a rival tokenization platform.
Ondo Finance views this decision as a significant step forward, suggesting that tokenized securities are poised to become an integral component of US capital markets.